The world is changing. Technology has become the catalyst for change and new ideas. Digitization forces us to rethink how we manage and do accounting. It’s an entirely different way of thinking. However, the established accounting rules have remained unchanged for centuries. This is not surprising if we consider that they were based on paper records and ledgers.
Today’s world has changed, but accounting has not yet fully adapted to the digital era. The emergence of the Internet and the World Wide Web enabled the creation of new business models. Economic activity is moving away from the physical world, where traditionally all actions are recorded and stored on paper, to a digital world characterized by new processes, organizational forms, methods of communication, and transactions. There are a few challenges where the role of accounting professionals lies.
Security is an essential quality in the field of business. Every business should have its internal system to remain secure. However, not all businesses have their system. Usually, they get their data from third parties, which are generally not as safe as a company would like them to be.
2. Smart Data
Firms are seeking new ways to optimize their businesses, allowing them to adapt more quickly to the competitive market and giving them a competitive advantage. This is often done through data analytics. However, upgrading to scalable solutions is essential, often overlooked in the quest to improve business processes.
Accounting is a human profession, but it is also accounting as a profession. The data-driven economy has created new challenges and opportunities in the accounting field. More and more companies are using research analytics in their accountants’ work.
In the age of digitally enabled businesses and increased consumer choice, customers now have more ways to interact with their companies. The need to use more than one channel, especially with consumers, drives professionals into this new field. The challenge will be to develop skills and competencies equally applicable in all media.
Blockchain will create new challenges for accountants to the extent that it will change how transactions are executed and recorded. A new data structure will be required to register all relevant transaction data. Blockchain will allow a new way to confirm the authenticity of transactions. This will mean that the old ways of auditing will have to be revised, and blockchain auditors may be needed. The challenge with blockchain will be in the training of auditors, as it is an entirely new data structure that most accountants do not understand well.